# New Hampshire Contractor Taxes and Licensing: What Trades Should Know

New Hampshire has no general sales and use tax, so contractors don't charge sales tax on labor or materials for New Hampshire jobs. Instead, businesses face two state taxes: a 7.5% Business Profits Tax once gross business income tops $109,000, and a 0.55% Business Enterprise Tax above $298,000, for periods beginning in 2025.

## Key takeaways

- No general sales or use tax, so no sales tax on your New Hampshire invoices and no resale certificates from the state.
- Cross the border and the rules change: Massachusetts charges 6.25% use tax on materials bought in New Hampshire for Massachusetts jobs.
- Business Profits Tax is 7.5%; Business Enterprise Tax is 0.55%. Each has its own filing threshold.
- No state income tax on wages, and the Interest and Dividends Tax is repealed for periods beginning after December 31, 2024.
- No state general contractor license, but electricians, plumbers and gas fitters are licensed through OPLC.

## How is New Hampshire different for contractors?

The headline is simple. The Department of Revenue Administration (DRA) says New Hampshire "does not have a general sales and use tax." It doesn't issue resale certificates, exemption certificates or tax-exempt numbers. If a supplier asks for one, DRA suggests you refer them to the department or print its page as proof.

That doesn't make New Hampshire tax-free for a contracting business. The state taxes business income and business payroll instead, through the **Business Profits Tax (BPT)** and the **Business Enterprise Tax (BET)**. Sole proprietors are in the BPT net, not just corporations. And because most of your neighbors do have a sales tax, the trap for New Hampshire crews is work across the line.

## Is contractor labor taxable in New Hampshire?

No. With no general sales tax, there's no tax on labor, repairs, installation or capital improvements, and no tax line on your invoice for work in New Hampshire. The capital-improvement-versus-repair question that drives sales tax in other states doesn't come up here. Your town may still charge permit fees, and New Hampshire does have narrower taxes such as meals and rooms, but none of them apply to ordinary construction labor or materials.

Be careful when you price work in a neighboring state. In [Massachusetts](https://www.brix.so/taxes/massachusetts) you're the consumer of materials on construction contracts, and in [Vermont](https://www.brix.so/taxes/vermont) you pay 6% on materials and can't itemize the tax. For the general framework, read [sales tax on labor vs. materials](https://www.brix.so/learn/sales-tax-on-labor-vs-materials).

## Do I owe tax on materials I buy in New Hampshire and use elsewhere?

Often, yes. Buying in New Hampshire avoids tax at the counter, but the state where the job sits can collect use tax. Two neighbors spell it out:

- **Massachusetts:** DOR says a 6.25% use tax is due on the full purchase price of building materials brought into Massachusetts from a non-use-tax state, and it names New Hampshire as the example.
- **Vermont:** the Department of Taxes says use tax isn't due on materials stored in Vermont 180 days or less for use on a job in a state with no sales tax. Going the other way, materials for a Vermont job owe Vermont's 6% if you didn't pay it at purchase.

Track where materials end up. If you run jobs in two states, keep job-level receipts so you can show which purchases went where. More in [use tax for contractors](https://www.brix.so/learn/use-tax-for-contractors).

## Does New Hampshire require a contractor license?

Not for general contracting. The Office of Professional Licensure and Certification (OPLC) board directory includes no general contractor, home improvement, roofing or HVAC board. The state does license electrical work and plumbing and fuel gas work through two OPLC boards.

**New Hampshire state licensing for common trades**

| Trade | Agency | License or registration | Link |
| --- | --- | --- | --- |
| General contractor / home improvement | None at the state level | No state license; check your town | [OPLC board list](https://www.oplc.nh.gov/find-board) |
| Electrical | OPLC, Electricians' Board | Apprentice (registered), journeyman, master, high/medium voltage; business entity license. Required to work with 30 volts or higher | [Electricians' Board](https://www.oplc.nh.gov/find-board/electricians-board) |
| Plumbing | OPLC, Mechanical Licensing Board | Plumber trainee, journeyman, master; business entity license | [Mechanical Licensing Board](https://www.oplc.nh.gov/find-board/mechanical-licensing-board) |
| HVAC (gas heat) | OPLC, Mechanical Licensing Board | Fuel gas fitter classes (installation, service, piping, domestic appliance, hearth); oil heating technician license is voluntary | [Mechanical Licensing Board](https://www.oplc.nh.gov/find-board/mechanical-licensing-board) |
| Roofing | None at the state level | No state license; check your town | [OPLC board list](https://www.oplc.nh.gov/find-board) |
| Home inspection | OPLC, Board of Home Inspectors | Home inspector license | [Board of Home Inspectors](https://www.oplc.nh.gov/find-board/board-home-inspectors) |

_Checked 2026-10-19 on oplc.nh.gov. Other state agencies may regulate specialty work; confirm with the agency before bidding._

Where the state is silent, towns fill the gap. Building permits, inspections and any local registration happen at the city or town level, so call the building department before you quote a job in a new town. The Electricians' Board also requires journeyman and master electricians to complete 15 hours of code-update training each code cycle. For a national view, see [contractor license basics](https://www.brix.so/learn/contractor-license).

## What business taxes do New Hampshire contractors pay?

There's no personal income tax on wages. DRA says the Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024. The two taxes that hit contractors are business taxes, per DRA's business taxes page:

- **Business Profits Tax:** 7.5% of taxable business profits for periods ending on or after December 31, 2023. For periods beginning on or after January 1, 2025, a business organization must file if gross business income from all activities is more than $109,000. Proprietorships file it, not only corporations.
- **Business Enterprise Tax:** 0.55% of the enterprise value tax base, which is compensation, interest and dividends paid. For periods beginning on or after January 1, 2025, file if gross receipts or the enterprise value tax base is more than $298,000. BET paid can be credited against BPT, with unused credit carried forward.
- **Thresholds move:** DRA adjusts both filing thresholds every two years.
- **Estimated payments:** DRA's BPT FAQ says four estimates of 25% each are due on the 15th day of the 4th, 6th, 9th and 12th months of the tax period for any liability over $200.

With no individual income tax, there's no state pass-through entity tax election to plan around. Federal quarterly estimates still apply to your profit. See [quarterly estimated taxes for contractors](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors) and the [quarterly estimated tax calculator](https://www.brix.so/tools/quarterly-estimated-tax-calculator).

## Who needs workers' comp in New Hampshire?

Any business with an employee. The New Hampshire Department of Labor says employers must obtain workers' comp coverage "prior to the hiring of any employee." Under RSA 281-A:2, an employer is anyone who employs one or more persons. Sole proprietors and partners are covered personally only if they elect it.

Corporate executive officers and designated LLC members and managers aren't counted as employees, but only up to three; any beyond three count. The law also presumes anyone you pay for services is an employee unless they meet seven criteria for an independent contractor, so a written agreement matters when you hire subs. Read more on [workers' compensation for contractors](https://www.brix.so/learn/workers-compensation).

> **No sales tax doesn't mean no tax questions**
>
> This guide summarizes New Hampshire's official guidance as of October 2026. Towns set their own permit rules, and jobs in Massachusetts, Vermont or Maine bring those states' sales and use taxes into play. This isn't tax or legal advice. A CPA who handles New Hampshire business taxes can tell you whether BPT and BET apply to you.

BRIX can track sales tax on quotes and invoices for out-of-state jobs, sync with QuickBooks, and track your electrical or mechanical licenses with alerts before renewals lapse. It doesn't determine taxability, file returns or give tax advice.

- [Bookkeeping and tax help](https://www.brix.so/features/bookkeeping-taxes): Keeps expenses categorized, tracks 1099 subcontractors and sales tax, and reminds you of quarterly estimated tax dates. BRIX does not file taxes or give tax advice.
- [Invoicing and payments](https://www.brix.so/features/invoicing-payments): Turns finished jobs into invoices and politely chases unpaid ones until the money is in your account.
- [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs.
- [Compliance and permit tracking](https://www.brix.so/#use-cases): Tracks licenses, safety documents and permits and flags renewals before they lapse.

## Frequently asked questions

### Do New Hampshire contractors charge sales tax?

No. DRA says New Hampshire has no general sales and use tax, so there's nothing to charge on labor or materials for New Hampshire jobs. Work in a neighboring state follows that state's rules.

### Do I need a general contractor license in New Hampshire?

No state general contractor license exists. Electricians, plumbers and fuel gas fitters are licensed through OPLC boards. Towns handle building permits and may have their own requirements.

### What is the New Hampshire Business Profits Tax rate?

DRA lists 7.5% for taxable periods ending on or after December 31, 2023. For periods beginning on or after January 1, 2025, you must file if gross business income is more than $109,000. The threshold is adjusted every two years.

### Does the Business Enterprise Tax apply to small contractors?

Only above the threshold. For periods beginning on or after January 1, 2025, you file if gross receipts or the enterprise value tax base exceeds $298,000. The rate is 0.55%, and BET paid can be credited against the Business Profits Tax.

### Do I owe Massachusetts tax on materials I bought in New Hampshire?

If you use them on a Massachusetts job, yes. Massachusetts DOR says a 6.25% use tax is due on the full price of building materials brought in from a non-use-tax state, and it names New Hampshire. Register and pay through MassTaxConnect.

### Does New Hampshire still tax interest and dividends?

No. DRA says the Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024. New Hampshire also has no tax on W-2 wages.

### Do New Hampshire sole proprietors need workers' comp?

Not for themselves unless they elect coverage. Once you hire anyone, New Hampshire law requires coverage before that employee starts. Corporate officers and LLC members are excluded from the count only up to three people.

## Related

- [Do Contractors Charge Sales Tax on Labor or Materials?](https://www.brix.so/learn/sales-tax-on-labor-vs-materials)
- [What Is Use Tax for Contractors?](https://www.brix.so/learn/use-tax-for-contractors)
- [What Is a Contractor License?](https://www.brix.so/learn/contractor-license)
- [What Is Workers' Compensation Insurance?](https://www.brix.so/learn/workers-compensation)
- [Quarterly Estimated Taxes for Contractors: How They Work in 2026](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors)
- [Quarterly Estimated Tax Calculator for Self-Employed Contractors (2026)](https://www.brix.so/tools/quarterly-estimated-tax-calculator)
- [Massachusetts Contractor Taxes and Licensing: What Trades Need to Know](https://www.brix.so/taxes/massachusetts)
- [Vermont Contractor Taxes and Licensing: What You Need to Know](https://www.brix.so/taxes/vermont)
- [Maine Contractor Taxes and Licensing: What Builders and Trades Should Know](https://www.brix.so/taxes/maine)
- [Self-Employment Tax Calculator (2026)](https://www.brix.so/tools/self-employment-tax-calculator)

## Sources

- [New Hampshire DRA — Resale & Exempt Certificates](https://www.revenue.nh.gov/licenses-certifications/resale-exempt-certificates) (checked 2026-10-19)
- [New Hampshire DRA — Business Taxes (BET and BPT)](https://www.revenue.nh.gov/taxes-glance/business-taxes) (checked 2026-10-19)
- [New Hampshire DRA — Business Profits Tax FAQ](https://www.revenue.nh.gov/resource-center/frequently-asked-questions/business-profits-tax) (checked 2026-10-19)
- [New Hampshire DRA — Interest & Dividends Tax](https://www.revenue.nh.gov/taxes-glance/interest-dividends-tax) (checked 2026-10-19)
- [New Hampshire OPLC — Find a Board](https://www.oplc.nh.gov/find-board) (checked 2026-10-19)
- [New Hampshire OPLC — Electricians' Board](https://www.oplc.nh.gov/find-board/electricians-board) (checked 2026-10-19)
- [New Hampshire OPLC — Mechanical Licensing Board](https://www.oplc.nh.gov/find-board/mechanical-licensing-board) (checked 2026-10-19)
- [New Hampshire Department of Labor — Workers' Compensation Employer Information](https://www.dol.nh.gov/workers-compensation/employer-information) (checked 2026-10-19)
- [New Hampshire RSA 281-A:2 — Workers' Compensation Definitions](https://gc.nh.gov/rsa/html/XXIII/281-A/281-A-2.htm) (checked 2026-10-19)
- [Massachusetts DOR — Out-of-State Contractors and Subcontractors (use tax on materials from NH)](https://www.mass.gov/info-details/out-of-state-contractors-and-subcontractors) (checked 2026-10-19)
- [Vermont Department of Taxes — Contractors](https://tax.vermont.gov/node/129) (checked 2026-10-19)

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Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/taxes/new-hampshire